Perceptions of economic policy uncertainty and digital transformation: Evidence from China

Purpose: This study aimed to investigate how perceptions of economic policy uncertainty affect digital transformation within enterprises, facilitating the development of more scientifically grounded transformation strategies and more precise deployment of related initiatives. Design/methodology/approach: The research focused on A-share listed companies in China from 2010 to 2022, examining the relationship between perceptions of economic policy uncertainty and digital transformation. Findings/results: The findings demonstrated that perceptions of economic policy uncertainty significantly hindered digital transformation, particularly affecting foundational technology transformation more than digital technology application transformation. Mechanism analysis identified financing challenges and managerial risk aversion as key pathways for this effect. In addition, a higher proportion of institutional investors and larger company size weakened the suppressive impact of economic policy uncertainty on digital transf